PERTH (miningweekly.com) – Gold major Newcrest Mining has inked a A$60-million exploration farm-in and joint venture (JV) agreement with explorer Antipa Minerals on a  2 180 km² portion of ground in the Paterson province of Western Australia.

Antipa's Wiki project, which is subject to the agreement, surrounds Newcrest's long-running Telfer gold/copper operation and ore processing facility.

The remote Paterson province is attracting much attention, following global miner Rio Tinto significant copper and gold discovery, named Winu.

Newcrest will invest an initial 6-million in exploration expenditure over the first two years of the earn-in, and a further A$10-million in the subsequent five years, to earn an initial 51% interest in the JV.

Once the 51% earn-in milestone has been reached, Newcrest will take over as manager of the JV.

The gold miner could then invest a further A$44-million in exploration expenditure over an eight-year period to earn a 75% interest in the JV.

The initial exploration activity at Wilki is planned to start within the next four to six weeks and will include a field reconnaissance programme, aerial electromagnetics, induced polarisation and reverse circulation and diamond core drilling.

Meanwhile, Newcrest would also acquire a 9.9% interest in fellow-listed Antipa by subscribing for A$3.9-million worth of shares, at a price of 1.7c each. Following the placement, Newcrest will have the right to appoint a director to the Antipa board.

The shares will be placed under Antipa’s existing placement capacity, and will not require shareholder approval.

“We are delighted to welcome Newcrest as a shareholder of Antipa and to be partnering with them to progress the exploration of our Wilki project in the world-class Paterson province,” said Antipa’s executive chairperson Stephen Power.

“The agreement with Newcrest is designed to ensure a robust exploration programme will be undertaken across the Wilki prospect over the coming years, including the drill testing of a number of highly prospective targets.

"Furthermore, the share placement positions Antipa in a strong financial position, enabling the company to progress exploration activities on its remaining 100% owned tenure.”